This article will feature the ultimate KCB M-PESA loan application guide.
In Kenya, obtaining a loan can be a daunting task for numerous individuals due to the traditional methods requiring a visit to a bank and a good credit score.
However, the KCB M-PESA Loan has revolutionized the lending landscape, providing a more accessible solution for Kenyans seeking financial assistance.
The KCB M-PESA Loan simplifies the borrowing process, enabling more people to access loans conveniently. Say goodbye to the barriers of traditional lending and embrace the ease and convenience of the KCB M-PESA Loan in Kenya.
The mobile loan product is from a partnership between the Kenya Commercial Bank and Safaricom M-PESA that enables Safaricom’s M-PESA customers to access instant loans at interest rates of 8.85% per month.
The loan is a micro-credit product that gives you access to a loan for emergencies to fund a project or enterprise. So, in this article, I will take you through everything you need to know about KCB M-PESA and how you can get a loan from them.
KCB KCB M-PESA Loan Eligibility Criteria
To open an account, you will need to have a
- National ID, Military ID, Kenyan Passport, Diplomatic ID (Registered on IPRS), or Alien ID.
- Be a registered Safaricom M-PESA customer.
- An active M-PESA account.
How to Open a KCB M-Pesa Account?
To open a KCB M-PESA account, follow these steps:
- Go to your M-PESA menu on your phone.
- Select ‘Loans & Savings.’
- Select ‘KCB M-PESA.’
- Click on ‘Activate.’
You are now all set to save and borrow with KCB M-PESA.
How to Apply for a KCB M-PESA Loan
Here’s a revised version of the text that is more descriptive and easier to understand:
To apply for a KCB M-PESA loan, follow these steps:
- Open the M-PESA menu on your phone.
- Select the “Loans & Savings” option.
- Choose “KCB M-PESA” from the list of options.
- Select “Loans” to proceed.
- Click on “Request Loan” and enter the desired loan amount.
- Enter your M-PESA PIN and submit the request.
Once approved, the loan amount will be deposited into your KCB M-PESA account. To access the funds, you can transfer the money from your KCB M-PESA account to your M-PESA account. This transfer is free of charge.
How to Repay the KCB M-PESA Loan
You can repay your KCB M-PESA loan in two main ways. The first way is by paying back the loan directly from your KCB M-PESA account. The second loan repayment method is through the M-PESA Paybill number.
To repay your KCB M-PESA loan directly from your KCB M-PESA account, follow these steps:
- Open the M-PESA menu on your phone.
- Select “Loans & Savings.”
- Choose “KCB M-PESA.”
- Select “Pay Loan”.
- Confirm the amount and press “OK.”
To repay your KCB M-PESA loan using the Paybill number 522559, follow these steps:
- Open the M-PESA menu on your phone.
- Select “Lipa na M-PESA”.
- Choose the “Paybill” option.
- Enter 522559 as the business number.
- Enter the phone number you used to take the loan as the account number.
- Enter the amount you want to pay.
- Enter your M-PESA PIN and press “OK.”
You will receive a transaction confirmation message from M-PESA once the payment is complete. However, making payment for your loan through the M-PESA Paybill number may take longer for the amount to be credited, and it may take up to 48 hours for loan repayment to be updated.
KCB M-PESA Account Benefits
The following are the benefits of the KCB M-PESA account:
- Borrowing can be done immediately without saving.
- Loan Disbursement is through the KCB M-PESA Account
- Personal accident insurance benefit based on savings
- Savings and withdrawals are easily made through either the Mpesa menu, KCB Mobi, or KCB Mtaani Agent
- The minimum amount one can save is Ksh 1 with a minimum of 1 million
Types of KCB M-PESA Accounts
Fixed Savings Account
This Account allows you to lock a specific amount of cash for a certain period.
Features
- No top-up is required once the amount is saved.
- Loan limits periods include 1, 3, 6, and 12 months with a minimum amount of Ksh 50
- All interest accrued is forfeited upon early or premature withdrawal
- You also get Life insurance benefits based on fixed deposit savings.
Target Savings Account
This Account allows you to set a saving goal or target and make deposits towards achieving that target.
Features
- Requires continuous contributions to achieve your target.
- The Account is accessible with standing orders from M-PESA or KCB M-PESA Account.
- Varying interest rates depend on the loan repayment period, i.e., one month (3%), three months (4%), six months (5%), and 12 months (6%)
- Cumulative interest
How to Send Money From M-PESA to Your KCB Account:
Go to M-PESA > Payment Services > Pay Bill > Enter 522522 as Business Number > Enter Your KCB Acc No > Enter the Amount to transfer > Enter Your Mpesa pin > OK.
You can also check out another product from KCB and M-Pesa known as Fuliza M-Pesa.
